1098-T for study abroad

[suep12]

My son did a study abroad program at the University of Galway. It was an approved program through his University.  We paid for the tuition from his 529 directly to Galway. Since we will not get a 1098-T from Galway, I created one through the exception but have no federal ID number for them so will not be eligible for American Opportunity Credit. Can I still enter the information so that I will not have to pay taxes on the 529 money withdraw to pay for the tuition abroad?

[Vanessa A]

Tuition abroad is only tax deductible if you pay for it at an a school that is listed as an eligible educational institution by the Department of Education.  Since the university of Galway in Ireland is eligible for the loan program, you can enter their OPEID 01276600 

International Schools that Participate in the Federal Student Loan Program

[Hal_Al]

Q.  Can I still enter the information so that I will not have to pay taxes on the 529 money withdraw to pay for the tuition abroad?

A. Yes, since Galway is an eligible institution.  But, better yet, just don't enter anything.

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

References:

1. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 
2. IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.

 Although, you cannot claim American Opportunity Credit (AOC) without a federal ID number, you can claim the less generous  Lifetime Learning Credit (LLC).  The LLC takes $10K of tuition (vs. only $4K for the AOC), to get the maximum credit amount ($2000 vs. $2500 for the AOC). 

[suep12]

After I enter the number and click continue, Turbo says, the EIN is invalid, so cannot save it. Looks like it is one digit short.

[Vanessa A]

Try adding a 0 in front of the string of numbers.